Resrarch Proposal of Chemical and Fertilizer

8/2/2019 Resrarch Proposal of Chemical and Fertilizer

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RESEARCH PROPOSAL

ON

Overview of chemical fertilizer industry in india andunderstanding the related customer preference.

In partial fulfilment of the requirements for Comprehensive Project for the

award of the degree of

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED TO

SOM-LALIT INSTITUTE OF BUSINESS MANAGEMENT

GUJARAT TECHNICAL UNIVERSITY

PROJECT GUID BY:

Ms. Reshmi Manon

SUBMITTED BY:

Hiteshsinh Parmar

Pankaj Padhiyar

GRAND PROJECT - SLIM 1


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Table of Content

No

.

Title

1 Introduction

2 Literature Review

3 Objectives of the study

4 Research Methodology

5 Data construction plan

6 Data Analysis and Cross Validation Procedure



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Knowledge and human power are synonyms, once said the great philosopher

Francis Bacon. However based on the experience within todays global

markets, he would probably say, The ability to capture, communicate &

leverage knowledge to solve problems is human power. This raises the

question how exactly one can best capture, communicate & leverage

knowledge, especially within world of system engineering.

The answer probably lies in statement itself by communicating your ideas and

devising ways and means to give shape to your plans in to reality, which requires

a long-term planning, investment and shrewd thinking. The tryst for knowledge

and power led me to two years M.B.A. degree course as part of this long-term

investment.

As a part of this M.B.A. degree, students have to undergo a project, which is

designed keeping the prerogative and preferences of industry in mind. This

particular project allows a student to implement what he has learned within the

four walls of classroom.

This report that we are submitting intends to highlight our versatility in sustaining

the pulls and pressure of day to day professional life and put to perspective the

facts that we are capable enough to deliver whenever a challenge is thrown to

us.This report is divided in two parts. The first part gives the basic information

about the project, the industry and the company. The second part consists of

Research Analysis and Conclusion on the basis of particular Research Process.

At the end we have provided a short list of the reference books and the sites that

provided useful information during the project.


PREFACE


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INTRODUCTION

The fertilizer industry presents one of the most energy intensive sectors within theIndian economy and is therefore of particular interest in the context of both local

and global environmental discussions. Increases in productivity through the

adoption of more efficient and cleaner technologies in the manufacturing sector

will be most effective in merging economic, environmental, and social

development objectives. A historical examination of productivity growth in Indias

industries embedded into a broader analysis of structural composition and policy

changes will help identify potential future development strategies that lead

towards a more sustainable development path. Issues of productivity growth and

patterns of substitution in the fertilizer sector as well as in other energy intensive

industries in India have been discussed from various perspectives.

Historical estimates vary from indicating an improvement to a decline in the

sectors productivity. The variation depends mainly on the time period considered,

the source of data, the type of indices and econometric specifications used for

reporting productivity growth. Regarding patterns of substitution most analyses

focus on interfuel substitution possibilities in the context of rising energy demand.

Not much research has been conducted on patterns of substitution among the

primary and secondary input factors:

Capital, labor, energy and materials. However, analyzing the use and substitution

possibilities of these factors as well as identifying the main drivers of productivity

growth among these and other factors is of special importance for understanding

technological and overall development of an industry.

In this paper we contribute to the discussion on productivity growth and the role of

technological change. We introduce the fertilizer industry in more detail taking into

account industry specific aspects such as structural composition, production,

technologies, energy consumption within processes, sector specific policies etc.



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This following we derive both statistical and econometric estimates of productivity

growth for the fertilizer sector over time. For the statistical analysis we develop

the Kendrick and Solow indices while for the econometric analysis a translog cost

function approach using both cross-state and national time series data is

employed. The results are then interpreted within a broader context of structural

and policy changes in the sector as well as other sector specific aspects.

Future energy use depends on the level of production and the technologies

employed. Furthermore, different economic and policy settings affect structures

and efficiencies within the sector. The final section therefore examines the

ongoing changes in the fertilizer industry structure. It compares best practice

technologies to Indian technologies and identify potentials and barriers to the

adoption of such efficiency improvements



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LITERATURE REVIEW

The focus on rainfed agriculture, and key challenges

Rainfed agriculture remains high on the development agenda in India. Its

contribution is vital to help avoid projected food gaps as a result of increasing

populations (typically around 2%) and in supporting the livelihoods of the poorest

farming families who do not have access to irrigated land.

Green revolution gains in agricultural productivity, food security and reduced

poverty were widely associated with irrigated areas where the benefits of

improved seeds and increased use of inorganic fertilisers could be realised.

However, the potential for expansion of irrigated agriculture is decreasing as it is

increasingly expensive to bring new land under irrigation (largely because water

resources are limited) and there are widespread problems associated with

overexploitation of groundwater. Groundwater is the most important source for

irrigation. As a consequence rainfed agriculture will continue on over 50% of land

in most Indian states (for example, irrigated areas were 21.6 and 38.4% in

Karnataka and Andhra Pradesh states respectively in 1993-94), and it will remain

the focus of much effort to increase productivity and avoid food gaps.

In addition to rising populations and projected food gaps (see for example Bhalla

et al., 1999), major concerns associated with the future of rainfed agriculture in

semi-arid India include decreasing yield growth and yields, negative nutrient

balances, and sustainability. Sustainability concerns reflect both the need to

increase returns to land and labour while maintaining soil productivity over the

long-term, and concerns about negative impacts of inorganic fertilisers on soil

quality and pollution. Further concerns at macro-economic level include the

ineffective targeting of the governments vast expenditure on agriculture (Bhalla et

al., 1999). Most government expenditure goes to subsidies for farm inputs,

particularly fertilisers, credit, water and electricity.



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The policy responses to these challenges include: modernisation of agriculture

such as encapsulated in Andhra Pradeshs 2020 vision (including

commercialisation, new varieties and GMOs, and continued irrigation

development), watershed development programmes to improve the potential of

land and develop water resources (some of these programmes are also

becoming more poverty and livelihoods focused and include non-land based

activities), and subsidies such as the fertiliser subsidy.

Other key reviews that have addressed soil fertility issues from a livelihoods

perspective include NRSP project R7458 reviews focused on semi-arid India and

global experiences (NRSP, undated; Tanner et al., 2000).

Livelihood systems and strategies

Conroy et al. (2001) identified the following key livelihood systems in rural semi-

arid India:

medium/large farmers, primarily dependent on agriculture (mixed but crops

usually more important than animals);

small/marginal farmers, who are primarily dependent on a combination of

agriculture (in some cases land may be leased rather than owned) and wage-

labour;

livestock-specialists, for whom animal husbandry is the principal livelihood

activity; and

landless labourers, who are primarily dependent on wage labour, which may be

agricultural or not.

Although agriculture continues to be the backbone of the rural economy and rural

livelihoods (see Box 1), there is increasing recognition of the role of non-farm

(and non-NR) livelihood contributions. Supplementing agricultural income with

casual wage labour is increasingly common as the relevant returns from such



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employment compared to agriculture improve. The poorest people are likely to be

wage labourers and small/ marginal farmers - especially given recent price

shocks - resulting in high levels of indebtedness and high suicide rates.

Livelihood strategies can be categorized in different ways. On approach is into

intensification and extensification, diversification and migration. Intensification

may involve increasing the number of crops and livestock per hectare per year

e.g. a second (rabi) crop perhaps through access to irrigation, and/ or increasing

the yield of crops and livestock products per hectare . Strategies to improve

productivity include soil and water conservation (SWC), the use of high-yielding

varieties (HYVs), irrigation, or use of animal feeds (Tanner, 1997). Extensification

includes the extension of agricultural areas for example into CPR lands, often

wastelands or forest lands. Other farmers have extended their cropping into tank

beds. Intensification (see for example Tanner et al., 2000) may be driven by

population pressure and declining land area, or by markets reflecting increased

demand. In reality, a combination of these forces is often at work. At the

household level intensification requires more capital (to buy inputs) or labour to

be invested (for example in crop rotations, cut and carry feeding etc). These

strategies are also likely to be combined, but the poor are typically expected to

intensify through greater use of labor. (Tanner et al., 2000).

Key aspects of farming systems

Perhaps the most important characteristics of semi-arid farming systems are the

objectives or motivations of farming families. These include food security,

insurance against risk, and profit maximisation (Conroy et al., 2001). Other

studies and field experiences have also shown that household food security is the

first concern of farmers when they decide on their

cropping pattern. Important risk spreading measures include diversification

(Farrington & James, 2000). Gulati & Keeley (1991) showed that with respect to

crops grown, farmers are on the whole most responsive to pricing factors.



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Access to land

The main land holding and tenure categories include land owners, tenants, share

croppers, and encroachment on CPR lands. In both Karnataka and Andhra

Pradesh past encroachment of wastelands has subsequently been regularised in

some cases and government investment utilised to improve these poor quality

lands. The poor have less secure access to land for cropping and are

consequently more dependent upon CPRs (for pasture, fodder, timber, and

NTFPs) although these are diminishing in quantity and quality.

The average landholding in drought prone states is 2.6 ha (Conroy et al., 2001)

but increasingly is not equally distributed. Most holdings are less than 2 ha in size

and landholdings are often less than 1 ha. The poor have the least productive

land and usually no irrigation so have generally not benefited directly from

increases in land under irrigation (see box 3). Landholdings are decreasing as a

result of an increasing population which provides pressure to intensify or diversify.

There is a significant landless population.



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Objectives

To understand current scenario of chemical

fertilizer industries.

Measurement of utilization and satisfaction level of

the customer toward chemical fertilizer.

To analyse chemical fertilizer industry in context of

Indian environment.

To judge and evaluate customers mindset towards

chemical fertilizers.

To understand the markets positioning of chemicalfertilizer in India.



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RESEARCH METHODOLOGY

DATA SOURCES 1. Primary data collectionthrough questionnaire

2. Secondary data collection

through journals, magazines.

TYPE OF RESEARCH Descriptive

RESEARCH APPROACH Survey method

RESEARCH INSTRUMENT Questionnaire

SAMPLE REGION JUNAGADH AND

BHAVNAGAR DIST.OF

GUJARAT

SAMPLE SIZE 100

SAMPLING TECHNIQUE Convenience Sampling

TARGET SAMPLE Farmers

DATA COLLECTION

PROCEDURE

Personal interview



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Data construction plan

Data collection sources:-

Data can be collected by two method 1) primary data collection 2)

secondary data collection. Both the method has its own advantages and

limitation.

Primary data collection:-

We will use questionnaire for the purpose of carry out our research.

The scales applied to the questions would be nominal, ordinal; interval

and ratio scales and accordingly the statistical tests will be applied to validatethe questions so asked.

Secondary data collection:-

The secondary data can be collected from magazine, newspaper,

journal, companys website, and different reports of the companies.



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Data Analysis and Cross Validation

1. For the analysis of data require certain process to be followed which Is

as follows

o Editing

o Coding

o Classification

o Tabulation

o Using percentages.

o Preparing of graph

2. We will use SPSS(Statistical Package for the Social Sciences)

software for the purpose of statistical analysis.

3. HO and H1 test

H0:Null hypothesis

Preference of rural and urban customer is same.

H1:Alternate hypothesis

Preference of rural and urban customer is not same.



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Resrarch Proposal of Chemical and Fertilizer